Volume and volatility on the Shenzhen A-Share Index have been dropping since the beginning of this month, as one would expect when a market moves into a consolidation phase. The Fibonacci 61 per cent retracement support (from 2012 low) area has held since late January, and did so as well in the second half of last year, suggesting yet more work above here for another week or two. Bounces are likely to be capped either close to the 50-day moving average at 1,905 points or more likely ahead of the psychological 2,000 points. Resistance also lies at the lower edge of the Ichimoku cloud, which drifts gently through to late April. Generally, we continue to allow for more backing and filling either side of 1,700 points.